central bank today (March 31) announced its final batch of 2022 winners, recognizing the Bank of Korea as Central Bank of the Year.
He also named Stanley Fischer as the recipient of this year’s Achievement Award.
For several months, the central bank team and an Editorial Advisory Board reviewed nominees and conducted interviews for the ninth annual awards. The first, second and third batches of winners were all released earlier in March.
Central Bank of the Year: The Bank of Korea demonstrated its effectiveness in all key areas of its mandate, winning the Central Bank of the Year award.
The BoK has acted swiftly in tackling inflationary risks, being the first central bank in the developed world to raise its policy rate in the current cycle. At the same time, it worked to monitor and reduce financial vulnerabilities and address social concerns. It has also greened some of its own operations and conducted detailed testing of a digital currency.
“We view this award as recognition of the tireless efforts of our monetary policy council members and bank staff in pursuing our mandate under very difficult circumstances,” Governor Lee Ju-yeol said. “But a myriad of challenges remain, and we will continue to remain dedicated and committed to the tasks ahead of us.”
Achievement for life: Stanley Fischer, recipient of this year’s Lifetime Achievement Award, has had a profound impact on central banking and the macroeconomy in general.
Fischer was one of the main architects of the New Keynesian framework, which continues to influence central bank policy today. He has also held major political positions, including as Chief Economist of the World Bank and First Deputy Managing Director of the International Monetary Fund. He was Governor of the Bank of Israel from 2005 to 2013 and Vice Chairman of the Federal Reserve from 2014 to 2017.
Christopher Jeffery, chairman of the Central Banking Awards Committee and editor of central banksaid: “Stanley Fischer’s commitment to fair rules for the international monetary system, his support for independent central banks implementing swift and decisive policy, his insistence on strong regulation of financial services and policymakers with the confidence needed to prevent potential financial crises, and its global influence on a new generation of public decision-makers marks a lifetime of exemplary achievement, service and purpose.
Transparency: the The Czech National Bank’s efforts to enhance its already strong commitment to openness and clarity were key to winning this year’s transparency award.
Over the past year, it has completed revamping its flagship monetary policy report – formerly known as the inflation report – to make it accessible to a wider audience. It has also worked to assign political positions to particular board members and publish key information about its main forecasting model, G3+.
Jiří Rusnok, Governor of the NBC, said the central bank had long been aware that independence had to go “hand in hand” with a high level of accountability. “The NBC has always pursued best practices, particularly in the area of monetary policy transparency, and will continue to do so in the future,” he said.
Initiative: The Initiative Prize was awarded this year jointly to two central banks: the Bank of Thailand and the Monetary Authority of Singapore. Institutions broke new ground by connecting their fast payment systems, PromptPay and PayNow, giving people a cheap, fast and secure way to send money.
Siritida Panomwon Na Ayudhya, Deputy Governor of the BoT, said the initiative has created the world’s first real-time cross-border money transfer system. “PromptPay-PayNow has brought tangible benefits to people, especially migrant workers, expats, students and small businesses,” she said.
SAMFintech Director Sopnendu Mohanty added: “The PN–polypropylene blueprint also lays the foundation for the use of distributed ledger and smart contract technologies in cross-border retail payments, to unlock further efficiencies.
The economy in the central bank: Wenxin Du won this year’s award for economics in central banking. The New York Fed economist shed new light on the cross-currency basis as an indicator of strains in global dollar funding markets. This previously little-understood indicator is now an essential metric for policymakers and analysts around the world.
Hyun Song Shin, head of research at the Bank for International Settlements, said Du’s work had been “hugely influential” in political and academic circles.
Beverly Hirtle, Director of Research at the New York Fed, said: “Wenxin Du is an innovative economist who has played an important role in deepening our understanding and use of the interest rate peg gap. interest covered in the assessment of global financial markets. His work has helped this concept – which was once considered a niche and little-known topic – to evolve into a key indicator of performance and risk in the financial system.
Reserve manager: The Central Bank of the United Arab Emirates won this year’s Reserve manager award for its work in implementing a new investment and external management policy over the past year.
The new approach involved adopting a new strategic asset allocation framework that allows the institution to diversify its portfolio. This notably enabled the central bank to integrate new asset classes.
“The Central Bank of United Arab Emirates made a clear assessment of potential claims on foreign exchange reserves,” said central bank Jeffery. “This clarity on its liquidity needs has given the central bank the confidence to diversify certain assets to improve long-term returns.”
Specialty Lending Initiative: BNP Paribas Securities Services strengthened its services for central banks over the past year, including a new tool to help customers meet reporting requirements for securities financing transactions. The French bank won this year the prize for the specialized loan initiative.
Andrew Geggus, global head of agency lending, said: “We are extremely proud of the relationship we have built with our central bank clients. To keep pace with their changing needs, we have adopted new product initiatives and a focus on sustainable finance. »
Technological services: SAP, this year’s winner Technology Services Award, won the award for implementing an ambitious overhaul of the Central Bank of Saudi Arabia’s (Sama) central banking system.
The project – complete with a “big bang” launch – replaced critical systems that manage the payroll of all Saudi government employees, as well as the bank accounts of the country’s royal family and the central bank’s own systems for the conduct of market operations. After intensive work by Sama and SAPthe launch went off without a hitch.
Peter-Antonius Bramm, Global Head of Central Banks at SAPsaid, “We are proud to continue our strategic partnership with Sama, and we truly look forward to supporting Sama and working with them to achieve their goals under the Saudi Vision 2030 strategic framework.”
Risk management technology: This year’s award for risk management technology went to BlackRock’s Aladdin Risk. The system provides day-to-day transparency through portfolio positions and exposures, performance and attribution, portfolio risk, scenario analysis, compliance and monitoring.
Sudhir Nair, global head of Aladdin at BlackRock, thanked the company’s “truly innovative partners” within the central banking community, highlighting in particular the Bank of Israel. Israel’s central bank adopted a specially adapted version of Aladdin in 2019.
Articles from the Central Banking Awards 2022 are available on this year’s awards hub.